If passed, the shift would enhance security and keep the gas fees affordable.
An ambitious plan to reunite with the Ethereum system by migrating from an independent Ethereum Virtual Machine (EVM)-compliant Layer-1 blockchain to a Layer-2 Ethereum-based solution is currently under discussion by the development team behind the Celo blockchain, CLabs.
Delving into the proposal's details shared on the governance forum of Celo, it is evident that the transition aims to adopt the OP Stack architecture, marking the transition to Ethereum's Layer-2 blockchain.
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The move is anticipated to eliminate constant vigilance on the tooling and library compatibility through continuous upgrades, noted in the forum discussion as it "simplifies the work of Celo developers, giving them seamless access to a broad spectrum of Ethereum tools and libraries."
A few core distinctions of this transition would encompass an off-chain data availability layer, guarded by Ethereum node operators and backed by restaked Ether. Therefore, the current validator set would be restructured into decentralized L2 sequencers.
Projected advantages of the proposed shift include amplified security while keeping the gas fees affordable. As stated in the proposal:
We foresee no significant change in gas fees. Given that our plan revolves around an L2 solution with off-chain data availability, gas charges can potentially be considerably lower than on other L2s.
The proposal will be the topic of discussion in a governance call on July 21st and will undergo a preliminary evaluation on the following day.
If the proposal is accepted, end-users would remain unaffected by the migration process, and CELO token holders would continue to exert control over core contracts through governance proposal votes. Additionally, CELO tokens would remain the medium for gas payments.
While the transition appears predominantly technical, it carries potential implications for the Celo ecosystem.
According to the forum's conversation, it could catalyze the flow of increased liquidity between Celo and other chains, but it might also incur additional costs for sequencers, such as fees on the data availability layer and gas on Ethereum. The question of whether sequencers' rewards would align with the current validators' rewards remains unanswered.
